The proximity bias: posing a challenge for New Work and hybrid work models

September 30, 2024

In recent years, the working world has gone through a profound transition. The traditional office environment, where employees were required to be physically present from 9 to 5, is being increasingly replaced by more flexible working arrangements. These New Work hybrid work models allow for a combination of on-site work in the office and working remotely. In Germany, hybrid work has been gaining popularity since the Corona pandemic. In the beginning of 2024, Haufe, an HR services provider, reported that 64% of workers in Germany which have an office workspace were participating in hybrid work. Hybrid work models are an integral component of New Work. The implementation of new technologies and changes in corporate culture have paved the way for employees to work more independently. However, this new way of working also presents its own challenges. Among them: the so-called “proximity bias”.

A hazard in the world of New Work: the proximity bias

“Proximity bias”, also known as “distance bias”, describes the psychological concept of how people instinctively favor others who are physically close to them. This psychological phenomenon is especially noticeable in hybrid work environments; it reveals itself in the unconscious tendency of those in leadership positions to evaluate the performance and skills of workers who are physically present as higher than those who work remotely. This perception negatively impacts employees who work 100% remotely, as well as those who work fewer hours in the office than their colleagues. What has been ascertained from the “proximity bias” so far? For one, it suggests that employees who often work at the office are promoted more than team members who mainly work remotely. The distorted perception of favoritism which the proximity bias is based upon can significantly impact a company’s staff. It often leads to unequal treatment within teams and undermines the motivation and loyalty of employees who work remotely. Especially in New Work environments, where flexibility and equal opportunity are essential values, the “proximity bias” poses a serious problem.

How the proximity bias endangers the benefits of hybrid work

The “proximity bias” might even prevent long-term hybrid working models from being established. This would mean a loss of the numerous benefits that hybrid work, as a core component of New Work, provides for both companies and employees. One of the biggest of these advantages is enhanced flexibility, which allows employees to harmoniously blend professional and personal activities, contributing to a better work-life balance. The positive impact this has, in regards to an employee’s satisfaction and well-being, can also lead to increased productivity, according to Germany’s Zukunftsinstitut (Future Institute). However, do New Work approaches, such as flexible working options, also present companies with opportunities? Companies who embrace hybrid work have the possibility to engage a larger pool of talent, regardless of their geographical location. This is certainly an attractive advantage, especially for companies in fields which are particularly struggling to fill positions due to the lack of skilled workers. Moreover, introducing hybrid work can help companies reduce their operating expenses, as the amount of office space they have to maintain will be decreased and they can opt instead for flexible office solutions to meet their needs.

In the world of New Work, hybrid work is also considered as an opportunity to foster inclusion and diversity. The flexibility of these models opens up the employment market to a broad range of workers with diverse backgrounds, skill sets and experiences. This encourages the formation of innovative and versatile teams, which in turn are a vital and enriching asset for companies.

Preventing proximity bias in hybrid work models

How can the “proximity bias” be avoided, so that hybrid working methods can (continue) to be successfully established? Fending off the “proximity bias” requires a concerted effort from companies and their employees in leadership roles. The first step is to openly acknowledge that this bias exists; it’s helpful as well to have transparent and objective criteria in place for promotions, assigning projects, and performance evaluations. For the criteria to be effective, it needs to be applied to all employees equally, regardless of whether they mainly work at the office or work remotely. Well-structured communication strategies can also ensure that all employees are treated equally. The communication strategy should include regularly scheduled team meetings which all employees can attend, which means these meetings cannot only be limited to physical attendance. Managers also have to make sure that the sharing of important information and decision making isn’t only confined to informal verbal exchanges in the office – there should be a formal, digital format capable of including everyone in these processes. Another way to steer clear of the “proximity bias” is to encourage a working culture which emphasizes recognition and appreciation based on performance rather than physical presence in the office. Management has to actively pursue ways to acknowledge the contributions and successes of their remote employees, and to make this acknowledgement apparent. This could be achieved by periodic feedback, recognition within the team, or highlighting successful performance within the company’s internal communication channels.

The outlook: New Work’s future-oriented role and overcoming the proximity bias

The working world will continue to evolve, and the presence of New Work methods will play a key role in the future. Therefore, hybrid work is not merely a trend, it is a fundamental change in how people work that provides both companies and employees with a considerable number of benefits. However, to take full advantage of the potential that this new working world offers, companies will have to actively master new challenges, such as those that come with implementing a hybrid work model. The “proximity bias” is one of the challenges here that shouldn’t be underestimated. Companies who are able to identify and overcome this bias have the capability to create inclusive, fair and more productive work environments. This is both a critical aspect of New Work and an important component of maintaining success in a working world which is continuously changing.